Waiting days or weeks to receive money from transactions is a common frustration faced by merchants.

Instant settlement via account-to-account payments can overcome the growth, cash flow and liquidity challenges that card and e-wallet processors impose through payout waiting periods.

What is instant settlement?

Instant settlement or real-times payment is just that; the transfer of funds from a customer account into a merchant account, in seconds.

In practical terms this means when a customer completes a checkout, the transferred funds are immediately made available to the merchant.

This upgrade is facilitated by Open Banking powered checkouts which connect customer and merchant accounts, removing the need for intermediary card scheme middlemen who hold and release funds at their own discretion.

How instant settlement accelerates growth

Open Banking checkouts offer merchants a more efficient and cost effective payment solution, and their customers a frictionless checkout experience. Instant settlement stimulates growth by enabling merchants to:

1. Improve cash flow

Immediate access to funds enables merchants to respond more quickly to both opportunities and challenges.

From reinvesting, purchasing inventory or enabling merchants to accept more orders, to paying wages, suppliers and debts on time, instant settlement empowers merchants with infinitely more flexibility than traditional payment methods which hold on to transaction funds.

2. Reduce payment processing costs

By cutting out card scheme and bank interchange fees, instant settlement account-to-account payments reduce the cost of accepting payments. This allows merchants to spend more on investing in growth, and less on processing payments.

3. Eliminate chargeback costs

Credit and debit card payments carry a risk of chargebacks and their associated costs. Instant settlement account-to-account payments disable the chargeback mechanism and enable merchants to effectively deal with legitimate transaction disputes, without having to factor in fees charged by card payment processors.

4. Improved cash management

Instant settlement gives merchants improved visibility on cash flow and greater control over the timing and certainty of payments. This simplifies often complex and time consuming planning and gives merchants more time to focus on growth.

Are instant settlement checkouts right for my business?

Instant settlement via Open Banking checkouts are driving positive and effective changes in the way businesses process payments and operate.

Account-to-account payment solutions offer merchants a frictionless, efficient and cost effective payment option.

If payment delays and held funds are negatively impacting your business, it's time for an upgrade.


Interested in implementing instant settlement checkouts?

Find out if VibePay's Open Banking powered checkouts are right for your business.

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